EXPAT Tax Rules
UK tax rules for expats and internationally mobile individuals are complex. The abolition of the non-dom regime in April 2025 represents the most significant change in decades.
Key Areas for Expats
Statutory Residence Test (SRT)
The SRT determines whether you are UK resident for tax purposes. It involves automatic overseas tests, automatic UK tests and sufficient ties tests. Getting this wrong can be very costly.
Non-Domicile Status (Pre-April 2025)
The non-dom regime allowed overseas income and gains to be taxed only if remitted to the UK. This was abolished from 6 April 2025 and replaced with a new 4-year Foreign Income & Gains (FIG) regime.
New FIG Regime (from April 2025)
New arrivals to the UK can elect to exempt foreign income and gains from UK tax for the first 4 years of UK residence, provided they were not UK resident in the previous 10 years.
Double Taxation Agreements
The UK has DTAs with over 130 countries. These prevent you being taxed twice on the same income, but navigating the correct relief requires careful planning.
Overseas Workday Relief (OWR)
Available under the new FIG regime for the first 3 years of residence. Allows exemption on employment income for days worked outside the UK.
Remittance Considerations
Even under the old non-dom rules, careful planning around how and when foreign income is brought to the UK remains important for those with pre-2025 foreign assets.
Expat Tax Advice from EP Laval Accountants
Whether you're arriving in or leaving the UK, our international tax specialists will ensure you're structured correctly from day one.
Speak to an Expat Tax Specialist